Tunisia Intra-Africa Trade and Tariff Profile December 2018

Tunisia: Intra-Africa trade and

tariff profile

No. 33 2018 TRADE DATA UPDATE

This Trade Data Update provides an overview of Tunisia’s intra-African trade relationships, both within the Regional Economic Communities (RECs) and with other individual African countries; the top import and export products traded; and applicable tariffs. Data is sourced from the UN International Trade Centre (ITC) TradeMap and World Trade Organisation (WTO) Tariff databases. The update is accompanied by a visual representation of key data and trends in an infographic.

Regional Economic Communities

Tunisia is party to several regional economic communities (RECs) in Africa. These include the Community of Sahel- Saharan States (CEN-SAD); the Arab Maghreb Union (AMU); and the Common Market for Eastern and Southern Africa (COMESA).

CEN-SAD currently has 24 member states. The ambition is to establish an Economic Union (which includes the free movement of goods and services). CEN-SAD was revived in 2013 with a revision of the CEN-SAD Treaty. The revised Treaty focuses on cooperation activities to foster peace, security and sustainable development and measures to adapt to climate change but has not yet entered into force, there is still no free trade agreement in place.

The member states of AMU are Algeria, Libya, Mauritania, Morocco and Tunisia. Although the AMU Treaty calls for a gradual move towards the free circulation of goods. No progress has been made and there is no free trade agreement in place.

Tunisia recently in 2018 joined COMESA and become the 21st member state of which 16 are part of the COMESA FTA. Eswatini (Swaziland) has preferential access under a derogation but is exempt from reciprocating preferences due to its membership of SACU. The DRC, Eritrea and Ethiopia although members are not part of the FTA and currently are in the process of joining the FTA.

Tunisia: Intra-Africa trade and tariff profile Trade Data Update, Issue No. 33 | December 2018

Intra-Africa trade

Tunisia’s trade composition with Africa is relatively diversified for exports, while imports are concentrated on relatively few products. In 2017, intra-Africa exports were valued at about US$ 1.5 billion while Tunisia imported over US$ 1.3 billion worth of goods. Intra- Africa exports account for 10% of Tunisia’s global exports while intra- Africa imports account for 6% of Tunisia’s global imports.

Given that AMU and CEN-SAD do not have preferential arrangements in place, this has meant that Tunisia has been trading on an MFN basis with most of Africa. However, the bulk of exports were destined to the AMU with Algeria; Libya and Morocco accounting for 72% of Tunisia’s intra-Africa exports. Senegal; Ethiopia and Egypt accounted for an additional 11% share in 2017. Top 10 export destinations accounted for 89% of Tunisia’s total intra-Africa exports. There were no Southern African countries in the top 10 export destinations for Tunisia’s exports in 2017.

In terms of import sources, 91% of Tunisia’s intra-Africa imports originated from the AMU states of Algeria (56%); Libya (26%) and Egypt (9%) in 2017 showing strong trading ties amongst the Arab states. Other countries which featured in the top 10 import sources included Uganda; Ghana; South Africa; Kenya; Zimbabwe and Ivory Coast albeit accounting for a combined 7% of Tunisia’s imports in 2017.

Table 1: Top 10 intra-Africa exported and imported products (2017)

Top exports (US$ millions) Top imports (US$ millions)

Product description 2017 % share Product description 2017 % share

All products 1 455 All products 1 330 Dates, figs, pineapples, avocados, Petroleum gas and other gaseous 55 4% 686 52% guavas, mangoes hydrocarbons Sanitary towels (pads) and tampons... 54 4% Petroleum oils (excluding crude); 196 15% Woven fabrics of cotton, containing >= 85% Fixed vegetable fats and oils 43 3% 37 3% cotton Phosphinates “hypophosphites”, phos- 39 3% Coffee, whether or not roasted 26 2% phonates “phosphites” and phosphates Trailers and semi-trailers; other vehicles 39 3% Food preparations, n.e.s. 21 2%

Pasta, whether or not cooked 37 3% Motor vehicles for the transport of goods 18 1%

Cement, incl. cement clinkers, 35 2% Passenger motor vehicles 17 1% Insulated “incl. enamelled or anodised” Organic surface-active agents (excluding 32 2% 15 1% wire, cable soap); Articles of plastics 31 2% Cocoa beans, whole or broken, raw or roasted 14 1% Semi-finished products of iron or non-alloy Margarine 30 2% 12 1% steel Other products 1 061 73% Other products 289 22%

Source: UN ITC TradeMap

Top export products included tropical fruits (dates; figs; pineapples etc); Sanitary Towels; vegetables fats and oils; and phosphinates, among others. Top 10 products accounted for a mere 23% of Tunisia’s total intra-Africa 2

Tunisia: Intra-Africa trade and tariff profile Trade Data Update, Issue No. 33 | December 2018 exports – showing the diversity of Tunisia’s export base. Top imports on the other hand included Petroleum gas; Petroleum oils; Woven fabrics and coffee, among others. Tunisia’s top 10 intra-Africa imports accounted for 88% of its total intra-Africa imports.

Intra-Africa tariff analysis

Tunisia is party to 3 RECs in Africa, however, as highlighted already AMU and CEN-SAD preferential arrangements are not yet in force and thus no preferential access to the Tunisia market. Furthermore, while Tunisia recently joined COMESA, going forward, countries that are members of COMESA will enjoy preferential access into Tunisia once it becomes part of the COMESA FTA. Important to note that COMESA intends to become a fully-fledged customs union.

With the exclusion of COMESA, Tunisia’s total intra-Africa imports were valued at US$ 917 million in 2017 which is equivalent to about 63% of Tunisia’s total intra-Africa imports. Of all products imported, the average tariff rate was about 11%. Given that most trade if not all was under MFN rates, the products imported are similar which include Petroleum; gas and oil; woven fabrics; coffee; motor vehicles among others.

Table 2: Tunisia’s top intra-Africa imports (excluding COMESA)

2017 Average Max tariff Product description % share (US$ ‘000) tariff (MFN) (MFN) All products (HS4 level) 917 11% 12%

Petroleum gas and other gaseous hydrocarbons 686 75% 0% 0%

Petroleum oils (excluding crude 21 2% 1% 4%

Motor vehicles for the transport of goods 17 2% 13% 20% Motor cars and other motor vehicles principally designed for 16 2% 2% 20% the transport of persons Woven fabrics of cotton, containing >= 85% cotton by weight 14 2% 20% 20% and weighing > 200 g/m² Cocoa beans, whole or broken, raw or roasted 14 1% 36% 36%

Float glass and surface ground or polished glass, in sheets 9 1% 20% 20%

Extracts, essences and concentrates, of coffee, tea or maté 8 1% 36% 36%

Casks, drums, cans, boxes and similar containers, 7 1% 20% 20%

Feldspar; leucite, nepheline and nepheline syenite; fluorspar 6 1% 0% 0%

Other products 118 13%

Source: UN ITC TradeMap and WTO Tariff Database